Business Whanganui recently brought together local business leaders, HR practitioners, and New Zealand’s Employment Court judges for an important discussion on workplace challenges, opportunities, and trends.
This unique information-sharing session offered perspectives from both ends of the spectrum – businesses applying employment law in practice and judges interpreting it at the highest level. The insights captured here highlight common pitfalls, emerging issues, and practical ways to strengthen workplace practices.
Please note: This is not a word-for-word record of the discussion, and no legal advice was provided during the session.
Commitment to Good Employment Practices
From the conversations on the day, it was clear that local businesses are committed to good employment practices and to supporting their employees. Employers are focused on:
- Building safe, fair, and positive workplaces
- Maintaining open communication and genuine engagement
- Balancing business needs with employee wellbeing
- Ensuring policies and practices align with current law and best practice
This reflects a strong intent across the business community to get it right while navigating a complex employment environment.
90-Day Trial Period
Businesses welcomed the reinstatement of the 90-day trial period as a positive step.
It provides flexibility to assess suitability and make better hiring decisions, while still requiring fair processes and clear communication.
Personal Grievances & Employee Advocate Concerns
- Employers expressed concern about a rise in disingenuous or malicious personal grievance claims, unregulated and “no win, no fee” employment advocates.
- Poor representation can lead to harm for both employees and employers.
- Businesses are encouraged to share experiences with Ministers as potential policy reforms are considered.
Worker Classification & Compliance
- Ongoing uncertainty around employee vs contractor classification is creating risks, including back pay, penalties, and compliance issues.
- Unnecessary Holidays Act complexities remain, an example being sick leave being calculated differently from annual leave.
- Employers anticipate challenges around pay disclosure in future disputes.
Mediation & Dispute Resolution
- Demand for mediation is increasing, leading to 8–10 week wait times.
- Online mediation is becoming more widely used and can speed up outcomes.
- In urgent situations, the Employment Court can fast-track certain cases, including reinstatement applications.
HSWA vs ERA – Navigating Obligations
Where obligations under the Health and Safety at Work Act (HSWA) and the Employment Relations Act (ERA) overlap or conflict, employers should assess each situation carefully and seek guidance to determine what is most appropriate in the circumstances.
Supporting a Changing Workforce
Supporting team members at all ages and stages, while planning for the changing needs of the business, requires robust processes and genuine engagement.
Businesses are adapting to changing workforce demographics and expectations by:
- Retaining valuable skills and experience
- Developing flexible policies to suit diverse needs
- Focusing on open, constructive communication
- Working with employees to create mutually beneficial solutions
Judges’ Insights – Avoiding Common Pitfalls
The Employment Court judges shared the most common issues they see that lead to disputes:
- Inconsistent or missing processes
- Using generic templates without adapting them
- Rushing performance management without adequate consultation
- Acting out of frustration instead of following process
- Poor communication between employers and employees
Consider:
- Establish clear, documented processes
- Tailor agreements and policies to specific roles and situations
- Focus on what is fair and reasonable in the circumstances
- Engage early with employees to avoid escalation
Key Takeaways
- Be proactive, not reactive — strong processes prevent problems.
- Customise agreements and policies — avoid one-size-fits-all approaches.
- Communicate early and openly to reduce conflict and build trust.
- Seek advice before issues escalate, especially around grievances, contractors, and compliance.
- Stay informed on policy developments, including advocate regulation, grievance reforms, and the 90-day trial period.
Summary
This gathering created a valuable opportunity to connect practical business experience with judicial interpretation of employment law.
While no legal advice was provided, participants benefited from hearing different perspectives on emerging trends, current challenges, and opportunities to improve workplace outcomes.
The discussions highlighted that local businesses remain committed to good employment practices, while robust processes, open communication, and genuine engagement continue to be the foundations for successful employer/employee relationships.
For more information contact:
Helen Garner
Business Whanganui – Chamber of Commerce
m. +64 21 345 385
Whanganui Business & NZ Employment Court Judges Gathering 4 Sep 2025, Te Whare o Rehua Sarjeant Gallery
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